Current through Register Vol. 43, No. 12, March 20, 2024
(a) Sections 10 and
11 of the national association of insurance commissioners' "credit for
reinsurance model regulation," January 1997 edition, with amended pages 5
through 22 dated July 2001, are adopted by reference, subject to the following
exceptions:
(1) In section 10(B)(1), delete
"Section [insert citation to state law equivalent to Section 4B of the Credit
for Reinsurance Model Law]," and replace it with "K.S.A.
40-221a and amendments thereto."
(2) In section 10(B)(11)(c), delete "Section
[insert citation to state law equivalent of Section 4B of the Credit for
Reinsurance Model Law]," and replace it with "K.S.A.
40-221a and amendments thereto."
(3) Section 10(D)(4) is not adopted by
reference.
(4) In section 11(A),
delete "Section [insert citation to state law equivalent of Section 4A of the
Credit for Reinsurance Model Law]," and replace it with "K.S.A.
40-221a and amendments thereto."
(5) In section 11(G), delete "Section [insert
citation to state law equivalent to 4A of the Credit for Reinsurance Model
Law]," and replace it with "K.S.A. 40-221a and
amendments thereto."
(b) Each trust that is used by an insurer,
organized under the laws of this state, to demonstrate compliance with
K.S.A.
40-221a(b)(1) and (3), and
amendments thereto, shall be established in a form approved by the
commissioner. The trust instrument shall include all of the following
provisions:
(1) Entry of the final order of
any court of competent jurisdiction in the United States will make contested
claims valid and enforceable.
(2)
Legal title to the assets of the trust will be vested in the trustee for the
benefit of the grantor's United States ceding insurers, their assigns, and
successors in interest.
(3) The
commissioner will have the power to examine the trust.
(4) The trust will remain in effect for as
long as the assuming group or insurer has outstanding obligations under
reinsurance agreements subject to the trust.
(5) On or before February 28 of each year, a
written report prepared by the trustees will be sent to the commissioner of
insurance containing the following:
(A) The
balance in the trust;
(B) a
listing of the trust's investments at the end of the preceding year; and
(C) a certification of the
termination date of the trust, or a certification that the trust will not
expire before the following December 31.
(c) Each amendment to the trust shall be
reviewed and approved by the commissioner before that amendment becomes
effective.
